Showing papers by "James R. Barth published in 1988"
01 Jan 1988
TL;DR: The financial system in a modern economy facilitates the transfer of resources from savers to borrowers as mentioned in this paper, and such a transfer allows the productive sectors to invest in capital necessary for growth.
Abstract: The financial system in a modern economy facilitates the transfer of resources from savers to borrowers. Such a transfer allows the productive sectors to invest in capital necessary for growth. The financial system also allows consumers to adjust to variations in income so as to smooth consumption.
17 citations
TL;DR: In this article, the relationship between inflation and the rate of interest for the United States during the 1953-1984 period was investigated and it was shown that the Fisher hypothesis is inverted.
Abstract: This paper provides new evidence on the relationship between inflation and the rate of interest for the United States during the 1953–1984 period. The results indicate that contrary to most previous studies, the Fisher hypothesis is inverted, which means that it is the real rate of interest rather than the nominal rate that moves inversely to the rate of inflation. However, this is the case only during periods of relatively stable inflation rates and moderate regulatory change. Over longer periods when factors are more volatile the inverted Fisher hypothesis is rejected.
16 citations
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